The Eastern Division of XYZ, Inc., has operating income of $32,000 on sales revenue of $320,000. Divisional operating assets are $160,000 and management of XYZ has determined that a minimum return of 10% should be expected from all investments.
(a.) Using the DuPont model, calculate the Eastern Division's margin, turnover, and ROI.
(b.) Calculate the Eastern Division's residual income.

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The Answer of The Eastern Division of XYZ, Inc., has operating income of $32,000 on sales revenue of $320,000. Divisional operating assets are $160,000 and management of XYZ has determined that a minimum return of 10% should be expected from all investments.
(a.) Using the DuPont model, calculate the Eastern Division's margin, turnover, and ROI.
(b.) Calculate the Eastern Division's residual income.